What is a Power of Attorney?

When someone says “power of attorney,” it usually refers to a financial power of attorney or a durable power of attorney. A financial power of attorney says who you want to be in charge of making financial decisions on your behalf if you’re unable to do so. It is one part of a comprehensive estate plan in California and it is one document that helps you to avoid having to go to probate court.

When do you need one? When you’re over 18, you need someone to be able to make decisions for you if you are ever incapacitated.

When is someone incapacitated? When they’re alive, but they might have lost consciousness or be under anesthesia or dementia and anything in between.

How long is the power of attorney in effect? You can have a power of attorney that goes into effect “immediately” or one that is triggered by incapacity. Meaning, you would need to be declared incapacitated by a physician before the person would be able to make decisions for you.

When does it end? Either when you no longer incapacitated or at the time you die. The financial power of attorney has no effect once someone has passed away.

What happens if you don’t have one? Your loved one goes to probate court to get the right to be able to make financial decisions on your behalf.

In addition to a financial power of attorney, you should also have a healthcare power of attorney! Please contact me for a consultation to discuss developing a comprehensive estate plan in California.